Netherlands Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Netherlands Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Summary

Following moderate growth in 2022, the construction industry in the Netherlands is expected to shrink by 2.2% in real terms this year, owing to subdued investor and consumer confidence, high construction costs, rising interest rates and supply chain disruptions, which are all expected to continue to weigh on the industry’s performance. According to Statistics Netherlands (CBS), the average construction cost index rose by 14.4% year on year (YoY) in 2022, preceded by an increase of 10.1% in 2021. The industry’s output in 2023 will also be affected by a sharp decline in building permits. According to the CBS, the total number of building permits issued in the country fell by 11.4% in 2022. Furthermore, the total value of orders received by contractors for buildings fell by 4.2% in 2022.

The industry is expected to regain momentum from 2024, supported by investments in transport and renewable energy infrastructure projects. The government aims to reduce greenhouse gas emissions by 49% compared to 1990 levels by 2030 and 95% by 2050. To support this target, it is focusing on increasing the capacity of renewable energy across the country. Thus, in November 2022, the government set up a fund of EUR35 billion ($35.7 billion) to finance projects that would help the country in energy transition. The Netherlands Enterprise Agency (RVO.nl), TenneT Holding BV (TenneT), and the Dutch Ministry of Economic Affairs and Climate (EZK) are planning to undertake the construction of offshore wind farms in three locations in the North Sea. The EUR15.1 billion ($15.4 billion) program includes the construction of offshore wind farms with a combined capacity of 10,700MW. The construction is expected to be completed by the end of 2030. To develop the country’s transport infrastructure—particularly roads, railroads, and waterways, as well as the air transport network—the government plans to allocate EUR25 billion ($25.5 billion) towards the construction of new roads and to resolve bottlenecks until 2028.

This report provides detailed market analysis, information, and insights into the Dutch construction industry, including -

• The Dutch construction industry's growth prospects by market, project type and construction activity
• Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Dutch construction industry
• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in the Netherlands. It provides -

• Historical (2018-2022) and forecast (2023-2027) valuations of the construction industry in the Netherlands, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

• Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.
• Assess market growth potential at a micro-level with over 600 time-series data forecasts.
• Understand the latest industry and market trends.
• Formulate and validate strategy using GlobalData's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.